Billionaire hedge fund manager Bill Ackman is applauding President Trump’s move to revoke Harvard University’s tax-exempt status, declaring the once-prestigious Ivy League institution has “become a political advocacy organization” that no longer deserves taxpayer privileges.
This comes after President Trump announced his administration would strip Harvard’s nonprofit status, citing its refusal to comply with new federal accountability measures aimed at combating institutional bias, bloated bureaucracy, and suppression of free speech. Harvard’s response? A lawsuit against the Trump administration.
Ackman, a Harvard alumnus and one of its most vocal critics in recent years, appeared on CNBC’s Squawk Box to address the controversy—and didn’t hold back.
“A Learning Institution Turned Activist Arm”
“When a university goes from being a university to becoming a political advocacy organization, it doesn’t deserve nonprofit status,” Ackman said plainly.
He slammed Harvard’s leadership for dismissing Trump’s policy letter with a curt legal response rather than engaging in good faith.
“They said, ‘We’re doing nothing. In fact, we’re going to sue you.’ That’s what Harvard did.”
Ackman argued that the university should have acknowledged the President’s valid concerns about taxpayer waste, administrative bloat, lack of viewpoint diversity, and erosion of free speech. He suggested a concrete action plan:
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Bring in a restructuring firm to eliminate waste.
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Apply zero-based budgeting to streamline operations.
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Commit to reestablishing ideological balance and academic freedom on campus.
“Taxpayer money going to Harvard is a privilege—not a right.”
“It’s Not About Learning Anymore”
Ackman lambasted Harvard for abandoning its academic mission in favor of progressive ideological enforcement:
“Students are self-censoring their remarks in classrooms. Faculty are doing the same because people are afraid to have real conversations. Free speech is not happening at Harvard.”
The outspoken investor referenced the infamous open letter signed by 31 student groups blaming Israel for the Hamas massacre on October 7, which he said highlighted the university’s moral decline and radical bias.
“Financially Fragile Behind the Curtain”
Ackman also took a sledgehammer to Harvard’s vaunted $53 billion endowment, calling its value “massively overstated” due to illiquid assets in venture capital, real estate, and private equity.
“They’re apparently selling a $1 billion slice of private equity. My guess is it could be 30-40% below current carrying value.”
Add to that $8 billion in debt, and Ackman warned that Harvard is operating more like a mismanaged corporation than a stable nonprofit:
“Donations are down. Government funds are at risk. And they rely on their tax-exempt status to attract funding.”
“A Reckoning for Harvard’s Leadership”
Ackman laid blame squarely on the university’s board, especially Chairwoman Penny Pritzker, a Democratic megadonor and Biden ally.
“If this were any other corporation, the notion that Penny Pritzker is still chairman after how Harvard handled everything—from COVID to free speech to hiring their president—is absurd.”
In 2024, Ackman called on Pritzker to step down, citing systemic failures in governance.
“Fix It or Lose It”
Ackman made clear that while he doesn’t want Harvard to lose its tax-exempt status, reform is non-negotiable:
“Harvard should be a place where students learn, where the best research gets done—not where pro-terrorist groups flourish and dissenting speech is silenced.”
President Trump’s threat to revoke Harvard’s federal privileges may be the only pressure powerful enough to force the institution to rediscover its founding purpose: education, not indoctrination.
“Make a deal with the President,” Ackman urged. “Fix this. Your alumni, your donors, your country is watching.”